What is a statutory review by HMRC?
Answered 17 March 2026
Based on the retrieved sources, here is a comprehensive answer:
What is a Statutory Review by HMRC?
A statutory review is a formal, legislatively-provided mechanism under the Taxes Management Act 1970 (TMA 1970) by which HMRC reconsiders a decision or assessment that a taxpayer has appealed, before the matter proceeds to the First-tier Tribunal (Tax Chamber).
What the law says
After a taxpayer has given notice of appeal to HMRC, either HMRC may offer a review, or the taxpayer may request one — this process is what is referred to as a "statutory review".
When a statutory review is triggered, HMRC must provide its "view of the matter in question" (defined as the matter to which the appeal relates under s.49I TMA 1970):
- Where the taxpayer requests a review, HMRC must provide its view within a specified period of receipt of the request (s.49B TMA 1970).
- Where HMRC offers a review, the view of the matter must accompany the offer notification (s.49C TMA 1970).
If HMRC offers a review, the taxpayer has 30 days to either accept the offer or notify the appeal to the tribunal. If the taxpayer does neither, HMRC's "view of the matter" is treated as a binding written settlement agreement under s.54(1) TMA 1970, and the taxpayer cannot resile from it unless they notify an appeal to the FTT (s.49C(3)–(6) TMA 1970).
Following the review, the review officer may conclude that HMRC's view should be upheld, varied, or cancelled (s.49E TMA 1970). That conclusion is again treated as a settlement agreement under s.54(1), unless the taxpayer notifies an appeal to the FTT (s.49F TMA 1970).
HMRC guidance / practice
Who conducts the review: The review is carried out by an officer not previously involved in the matter — i.e., an independent review officer, typically from HMRC Legal Group.
How HMRC offers a review: If discussions with the customer do not resolve the matter, the decision maker writes to the customer explaining HMRC's position and offering a review. HMRC cannot itself refer an appeal to the tribunal — the offer of a review is the route by which HMRC progresses the appeal to a conclusion.
How a taxpayer requests a review: The customer may ask HMRC for a review at any time after they have appealed. The decision maker must then write to the customer within 30 days of the review request (or other reasonable time) setting out HMRC's most recent view of the matter (s.49B(2) TMA 1970).
Time limit for completing the review: The review must be completed within 45 days (or a longer period agreed between the review officer and the taxpayer). If HMRC does not issue a conclusion letter within that deadline, HMRC is treated as having upheld its original decision.
After the review conclusion: The taxpayer has 30 days from the conclusion letter to notify an appeal to the tribunal if they disagree. If they do nothing or accept the conclusion, the matter is treated as finally settled.
Key point: A taxpayer cannot notify an appeal to the tribunal while a review is being carried out.
Citation sources
The review conclusion should be sent to the customer within 45 days of the date HMRC receive the customer’s request for a review. There may be cases where the review officer cannot complete their review within this time limit, for example where they are seeking further advice. If so, see ARTG6350.
Where the customer appeals within the 30 day time limit, there may be further discussions or further information provided for the decision maker to consider. The customer may ask HMRC for a review of our decision at any time after they have appealed. The decision maker must then write to the customer within 30 days of the review request (or other reasonable time) setting out our most recent view of the matter (s 49B(2) TMA 1970), see ARTG4290. The review offer letter must always be sent directly
The customer may notify an appeal to the tribunal at any time between appealing against HMRC’s decision or assessment and accepting an offer of a review of HMRC’s decision or assessment (s 49D(1)-(4) TMA 1970), or at any time between appealing against HMRC’s decision or assessment and HMRC sending its latest view of the matter following the customer’s request for a review assessment (s 49D(1)-(4) TMA 1970) , or following a review within 30 days of the date of HMRC’s conclusion of review letter,
If discussions with the customer or their representative do not resolve the matter or if discussions are not appropriate or possible, the decision maker may write to the customer explaining our position and offering a review. HMRC cannot refer the appeal to the tribunal; the offer of a review is the route by which we progress the appeal to a conclusion. The decision maker must write directly to the customer when offering a review even in cases where we have been dealing directly with their agent
If the taxpayer requests a review or accepts HMRC’s offer of a review, the case will be referred to Solicitor’s Office and Legal Services - Reviews and Litigation to conduct the review. The review is carried out in accordance with the HMRC Appeals, Reviews and Tribunals Guidance beginning at ARTG4000. When the review is completed the Review Officer will issue a letter to the taxpayer setting out the Review Officer’s conclusions. The review outcome may be to uphold the original decision, to vary
The review should be completed within 45 days (or longer agreed period). The review officer should write to the person to tell them their review conclusion. For an SAO related penalty the review conclusion will be that the penalty is either upheld, or cancelled. If the review officer does not send a conclusion of review letter to the customer at the end of 45 days (or an agreed longer period) they should contact the customer, by phone if possible, and negotiate an extension to the review period.
If your application is rejected, we’ll tell you the reasons why. If you do not agree with the decision, you can either: ask for the decision to be reviewed by an HMRC officer not previously involved in the matter appeal to an independent tribunal If you opt for a review, you can still appeal to the tribunal after the review has finished. If you want a review, you should: write to the address given in the decision letter within 30 days of the date of the letter give your reasons why you do not ag
sending written notice of the appeal to HMRC within the time specified in s. 31A. (6) Once a notice of appeal has been given to HMRC, HMRC may offer a review or the taxpayer may request a review (this is sometimes referred to as a “statutory review”). The taxpayer may also notify the appeal to the First-tier Tribunal (Tax Chamber) (FTT): s. 49A TMA 1970. (7) When a statutory review is requested by the taxpayer or offered by HMRC, HMRC must provide its “view of the matter in question”. “Matter in
During the visit the VAT officer will: discuss with you the various aspects of your business give an indication of the length of the visit examine the records of the business advise you of overpayments as well as underpayments At the end of the visit the officer will: review the work performed discuss any concerns arising agree what is to be done in the future Where an error is found, the officer will: describe how the adjustment will be made agree the adjustment whenever possible tell you that
If the decision of the review officer is to uphold or vary HMRC’s decision, they will normally wait for a period of 45 days to allow time for the customer to appeal to the tribunal, for the tribunal to tell the Clearing House, see ARTG8320 and for the Clearing House to tell the decision maker and review officer. If the customer agrees with the review officer’s conclusions, or decides not to pursue the matter further, the matter is treated as final If the customer disagrees with the review office